Economics Quiz 3

A monopoly is characterized by:

• The decrease in incremental output from additional units of input

• A single seller controlling the entire supply of a productMono

• Many firms competing for the same product

• The increase in output from additional input

Which of the following is described by the characteristics listed in the box?

• Monopoly

• Oligopoly

• Pure competition

• Monopolistic competition

In monopolistic competition there are many buyers and sellers

• True
• False

What is fiscal policy?

• Regulation of trade between countries

• Control of inflation by a central bank

• Government adjustments in spending and taxation to influence the economy

• A system of public goods, transportation and communication

Trade balance is defined as:

• The difference between a country's exports and imports of goods and services.

• The level of government subsidies for exports and imports to make the price of a product raise and fall faster.

• A measure that examines the average change over time in the prices paid by consumers for goods and services.

• The value of trade agreements between many nations.

The Consumer Price Index (CPI) measures

• The unemployment rate in a country

• The rate at which general prices rise, eroding purchasing power

• The total value of all goods produced in a country

• The average change in prices paid by consumers over time/day by day/week by week

What is the primary goal of fiscal policy?

• Controlling inflation

• Managing government spending and taxation

• Regulating interest rates

• Reducing unemployment

Answer explanation

The primary goal of fiscal policy is managing government spending and taxation, not controlling inflation, regulating interest rates, or reducing unemployment.

What is the primary goal of fiscal policy?

• Controlling inflation

• Managing government spending and taxation

• Regulating interest rates

• Reducing unemployment

Answer explanation

The primary goal of fiscal policy is managing government spending and taxation, not controlling inflation, regulating interest rates, or reducing unemployment.

National debt is defined as

• The wealth of a country's citizens.

• the rate at which people apply for unemployement at the unemployment office.

• The total amount of money a country's government has borrowed and not repaid

• The annual budget deficit of a foreign nation.

Public goods are characterized by

• Being non-excludable and non-rivalrous

• How economic policies affect individual and societal well-being

• Private ownership of goods and services inside of a nation.

• Being excludable and rivalrous(this is NOT the answer)